Here Are Cannabis Companies Looking To Bounce In The Market
Marijuana stocks are caught once again in a downward trend due to more industry hold-ups. In recent news, the DEA who not long ago was on board and on track to reschedule cannabis has now put that action on pause. What a surprise! This is not an unfamiliar occurrence for the cannabis industry, especially during an election year. During this time candidates are focused on winning votes and meeting the needs of those voters.
As cannabis is still on the rise and growing more popular across the nation presidential candidates often touch on making the industry better and that speculation creates momentum in most cannabis stocks. So when there is a hold-up or letdown regarding cannabis legislation on the federal level seeing another pause it once again lets down shareholders and investors. But it is the more optimistic investors who see the bigger picture with hope for the future finding opportunities in the decline.
It’s not a secret that just because a company can be profiting lots of money does not mean that success carries over to the market. Yet many feel this will happen in such a fashion with the right reform in place. That way there is no fear or uncertainty and the industry can start to be viewed as any other legitimate sector. Below are several marijuana stocks to watch for better trading as better efforts to pass federal reform continue.
Top Marijuana Stocks For Investors
GrowGeneration Corp. (NASDAQ:GRWG)
The Scotts Miracle-Gro Company (NYSE: SMG)
Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)
GrowGeneration Corp.
GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. Back on August 8th, the company reported its Q2 2024 financial earnings. 
Highlights And Key Mentions
- Net sales increased 11.8% quarter-over-quarter to $53.5 million;
- Proprietary brand sales as a percentage of Cultivation and Gardening net sales increased to 21.5% as compared to 16.7% in the same prior year period;
- A gross profit margin of 26.9%, a 110 basis point sequential improvement, and an increase from 26.8% in the comparable 2023 period;
- Operating expenses decreased $2.5 million from the second quarter of 2023 to $20.9 million in the second quarter of 2024;
- Net loss of $5.9 million, a sequential improvement of $2.9 million;
- Adjusted EBITDA(1) loss of $1.1 million, a sequential improvement of $1.7 million; and
- Cash, cash equivalents, and marketable securities of $56.0 million and no debt.
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The Scotts Miracle-Gro Company
The Scotts Miracle-Gro Company, together with its subsidiaries, manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. 
It operates through three segments: U.S. Consumer, Hawthorne, and Other. Recently the company reported its Fiscal 2024 Q3 results.
Fiscal 2023 Highlights
- U.S. Consumer third quarter net sales of $1 billion exceed prior year by 11 percent;
- Consumer engagement shows strength with unit POS up 10 percent year-to-date
- Third quarter GAAP gross margin rate of 29.5 percent improves 1,110 bps over the prior year; Non-GAAP adjusted gross margin rate of 29.2 percent improves 790 bps
- Hawthorne proprietary Signature sales increase 6 percent in Q3
- Third quarter 2024 GAAP EPS of $2.28; Non-GAAP Adjusted EPS of $2.31 nearly doubles third quarter 2023 non-GAAP result
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Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc., together with its subsidiaries, manufactures and distributes controlled environment agriculture (CEA) equipment and supplies in the United States and Canada. Recently the company announced its 2024 Q2 results. 
2024 Second Quarter Results
- Net sales decreased to $54.8 million compared to $63.1 million.
- Gross Profit Margin decreased to 19.8% of net sales compared to 23.0%.
- Adjusted Gross Profit Margin(1) decreased to 24.4% of net sales compared to 27.0%.
- Net loss increased to $23.5 million compared to $12.9 million.
- Adjusted EBITDA(1) decreased to $1.7 million compared to $2.5 million.
- Cash from operating activities and Free Cash Flow(1) were $3.8 million and $3.4 million, respectively.
- Completed the previously announced IGE Asset Sale(2) in May 2024.
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